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British Gas owners cite “result of the unusual period of extended cold weather”
Centrica have argued that “as a result of the unusual period of extended cold weather, average residential gas consumption was 18% higher in the first four months of 2013 than in the same period in 2012”.
Announced in the company’s Interim Management Statement they also cite research that the “average residential electricity consumption was 3% higher”.
The company argue that as a result of the economic pressuers facing customers they use profits will be “used to maintain our price competitiveness” and that they “expect the residential energy supply business to deliver an operating profit for the full year in line with expectations, weighted towards the first half”.
In a statement Centrica said that in the year to date their “strong performance” will enable them to “continue to invest in customer service and price competitiveness and full year earnings growth is expected to be in line with market expectations. We have also made good progress towards our refreshed strategic priorities, having announced a North American LNG export agreement with Cheniere in March and the acquisition of Canadian natural gas assets from Suncor in partnership with Qatar Petroleum International (QPI) in April”.
Addressing the company’s interest charge and financial situation the Interim statement said that it is “expected to be around £230 million this year, reflecting the amendment to the IAS19 accounting standard, which increases non-cash pension charges. Based on current pre-tax profit expectations, the Group’s effective tax rate for the full year is expected to be around 46%, reflecting the higher proportion of operating profit from our upstream gas and oil business. At the end of April net debt stood at £4.0 billion”.
The Group has now commenced its £500 million share repurchase programme and to date has purchased 18.7 million shares for a total cost of £66.5 million.
Centrica is due to release its Interim Results for the first six months of 2013 on 31 July 2013.
